Check: Crypto live prices
On Wednesday, the cryptocurrency market capitalisation was at $895bn (£738bn), a rise of around 1% in the last 24 hours, according to Coingecko.
Bitcoin was above the $17,000 mark, up 4.7% in the past week to $17,468 as of the time of writing.
Ethereum, the second largest cryptocurrency by market cap, posted gains of over 10% in the past week, to $1,336.
Memecoin dogecoin (DOGE-USD) spiked 9.5% in the past week, to $0.077.
Cardano made the most gains with a 25% surge in the past seven days to $0.316.
Cardano founder Charles Hoskinson took to Twitter to discuss the rally.
Referring to an upcoming update for the smart contract blockchain he said: "Just you wait until CIP 1694 and the MBO unlocks the community.
"Millions of people working together for growth and utility."
Just you wait until CIP 1694 and the MBO unlocks the community. Millions of people working together for growth and utility
— Charles Hoskinson (@IOHK_Charles) January 8, 2023
The Cardano "Voltaire Upgrade" will see millions of people collaborating for the growth and utility of ADA, the blockchain's native cryptocurrency, according to Hoskinson.
But the early year rally has been overshadowed by signs of ill-health in the burgeoning industry.
Coinbase (COIN) has been forced to slash its workforce and is closing the bulk of its operations in Japan as part of a move to adjust international investment amid a slump in the digital-asset sector.
The crypto market took a reputational hit in 2022 after the collapse of the FTX cryptocurrency exchange.
The Bahamas-based exchange imploded in early November 2022, bringing down the once crypto-tycoon Sam Bankman-Fried.
This added to the industry's struggles after the fall of Terra's UST algorithmic stablecoin in the summer of 2022.
Terra's fall led to the collapse of several crypto firms and resulted in a slump in the sector's combined market cap, which fell by over $2tn in 2022.